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RBA On Tuesday, Expectations Split

AUSTRALIA DATA

The focus of the week will be Tuesday’s RBA meeting, which is again looking “finely balanced”. Analysts are split 14 to 13 between unchanged and a 25bp hike in Bloomberg and the market is sitting on the fence. Governor Lowe doesn’t speak until July 12.

  • Monday sees a lot of data print. The June Melbourne Institute inflation gauge is due. It eased to 5.9% in May from 6.1%. ANZ job ads for June are also released today.
  • May building approvals are published and expected to rise 3% m/m, which only unwinds part of the 8.1% slump in April. Home loans for May also print and are expected to rise 1.4% m/m. House prices rose 1.4% m/m in May.
  • On Wednesday, final Judo Bank composite and services PMIs are released. Both are holding just above the breakeven-50 level.
  • Finally on Thursday, May trade data are published. The surplus is expected to narrow slightly to $10.7bn from $11.16bn. Exports fell 5% m/m in April but imports rose 1.6%.

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